Car insurance rates for people under the age of 25 are typically higher than those 26 or older. Couple that with the fact that many college students are no longer on their parents’ insurance policy and it is easy to see why car insurance for students out of high school are often much more expensive than other policies.
As a result, many college students simply choose their car insurance plan based on price alone and pick the lowest rates. What students should realize, though, is that the lowest rates on the surface are not always the best plans to take. Here are a few things to consider when purchasing car insurance for students in college:
How much driving will you actually be doing?
If you will be living on campus that is at least 100 miles from your home and you plan on leaving your car at your parents’ house instead of leaving it on the campus parking lot, you could save a lot of money on your insurance. Many insurance companies provide a discount known as a resident student discount which can result in as much as 30% savings. On the other hand, if you are making a daily commute to school and back you may want to consider increasing your coverage plan to make sure you are protected in the event of an accident.
Maintain high grades.
A lot of people do not realize that a good grade discount on car insurance for students does not end at high school. Most insurance plans will offer discounts to students that maintain a B average (3.0) GPA or make it to the Dean’s list up to the age of 25. If you received a good grade discount in high school, make sure your insurance company is aware that you are entering college and would like to maintain the discount.